INDONESIA NUTRICOSMETICS MARKET ANALYSIS

The Indonesia nutricosmetics market is projected to surpass US$ 382.7 Million by the end of 2030 and is expected to exhibit a CAGR of 9.4% during the forecast period (2023 to 2030).

Nutricosmetics are oral-based nutritional supplements for beauty and skin health. The Indonesia nutricosmetics market is primarily driven by the expansion and consumer awareness of personal grooming, coupled with the busy lifestyle of an ever-growing urban population. Nutricosmetics are health products mainly used for the treatment of hair, nail, and skin defects and sun protection. Micronutrients such as carotenes, flavonoids, and omega-3 fatty acids present in nutricosmetics also provide protection from ultraviolet light exposure and reduce the aging of the skin and wrinkle formation. Some of the key drivers expected to fuel the Indonesia nutricosmetics market growth are rising retail shops across the globe, the popularity of ready-to-drink nutricosmetics beverages, the preference for effective and safe beauty solutions boosting the sales of cosmetic supplements. consumer awareness about the prevention of pre-mature skin aging.

Market Drivers

• Various applications of nutricosmetics: Nutricosmetics are nutritional supplements that can be consumed orally and are used to maintain aesthetic beauty and skin health while protecting the body against various physical defects. Nutricosmetic products contain active ingredients that provide an important linkage between the well-being and aesthetic properties of nutritional ingredients. The increasing acceptance of ready-to-drink nutricosmetic refreshments and easily consumable pills, coupled with an inclination towards effective and harmless beauty solutions, is expected to augment  Nutricosmetics market growth.
• Various applications of nutricosmetics: Increasing awareness regarding the ‘beauty from within’ concept has led to increased sales of nutricosmetics in the Indonesia country. For instance, according to an Indonesian gummy supplement start-up, YOU, said the sales of its adults and kids’ multivitamins nearly tripled amid the coronavirus outbreak as people recognized vitamins as a means of preventive healthcare.

Market Restraints

• High cost of nutricosmetics: Higher costs of nutricosmetics are a major hindrance to growth of the Indonesia nutricosmetics market. The large-scale commercialization and use of conventional cosmetics is the biggest competition for the Indonesia nutricosmetics market. The effects of conventional cosmetics are immediate as compared to nutricosmetics. This proves to be another major factor that impacts the Indonesia nutricosmetics market's growth. For instance, In the nutricosmetics market, factors including quick innovation and technical developments are anticipated to gain traction. The food packaging company Mars introduced Dove Beautiful in the U.S. which contains biotin, zinc, and vitamins E and C, and Dove Vitalize, which contains dark chocolate enriched with vitamin B. Despite significant investment in product advertising or product promotion, these product failed to increase customer demand in the U.S. market.

Market Opportunities

According to Coherent Market Insights analysis, Indonesia has the largest Muslim population in the world. Local cosmetic manufacturers can use halal certification to grow its market share in overseas markets, in addition to giving it’s a competitive advantage over global brands in the internal  market. Moreover, Indonesian  government is focused on boosting the growth of the Indonesian halal industry by easing access and cutting the cost of halal certification for micro and small businesses. In October 2020, the government implemented Halal Product Assurance Law No. 13/2014, requiring mandatory halal certification for all products that are halal. This is expected to drive demand for halal cosmetic products over the forecast period.

Market Trends

Consumers in Indonesia are increasingly concerned about health and wellness, directing their focus on ingredients used in various beauty products. Increasing demand for natural or organic products is expected to drive the Nutricosmetics market growth over the forecast period. Over the projected period, the worldwide nutricosmetics market is anticipated to increase as a result of rising consumer awareness, busy lifestyles, and the desire for personal grooming in Asia Pacific.  Due to its fast growing economy, the Pacific is anticipated to be the most attractive market throughout the projected increased healthcare awareness combined with an expanding economy, particularly in China and India, which This will influence customers to incorporate nutricosmetics into their usual diet. Additionally, the region's expanding retail sector is anticipated to expand the demand for from 2023 until 2030, nutricosmetics. For instance the India Brand Equity Foundation (IBEF)—a Trust created by the Ministry of Commerce and Industry, Department of Commerce, Government of India , on 2021.

Figure 1. Indonesia Nutricosmetics Market Revenue Share (%), By Product Type, in 2022

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Key Takeaways from the Graph:

• Among product type, the vitamins segment held the dominant position and accounted for 39% share of Indonesia nutricosmetics market in 2022
• The consumption of vitamins has numerous health benefits, including improved eye health, metabolism, brain development, digestion, skin health, and a reduced risk of heart disease. Although vitamins can be ingested into the body through vitamin-rich foods, nutricosmetics can help bridge the gap between conventional diets and vitamin requirements.

Indonesia Nutricosmetics Market - Impact of Coronavirus (COVID-19) Pandemic

• The coronavirus outbreak in the Indonesia country has severely impacted by the economy of Indonesia. Most of the industrial sectors have been hard hit by the pandemic. Workers in both the formal and informal sectors have lost their jobs. According to a report, Indonesia and COVID-19 Impact on the Private Sector, published by the United Nations, workers in manufacturing and education and training experienced the most significant negative impact, affecting around 60% of workers who either had their pay cut and worked the same hours or reduced working hours. This has led to less consumer spending on non-essential products, such as beauty products. This is expected to affect Indonesia nutricosmetics market during the pandemic.
• According to the World Bank, in November 2020, 50% of households in Indonesia reduced the consumption of non-essential products, such as beauty products, to cope with the pandemic effect. On average, households reduced 30% and 40% of their usual pre-pandemic monthly food and non-food expenditures, respectively. According to the same source, 50% of households relied on assistance or borrowed from friends or family to meet its basic needs. Furthermore, 23% of households reported food shortages, while 29% reported eating less.

Competitive Section

The major players operating in the Indonesia nutricosmetics market include Amway Corporation, BASF SE, ExcelVite Sdn. Bhd., Functionalab Group, Glaxosmithkline Plc., Innéov Spain SA, LycoRed Ltd., PT. Vitabiotics Indonesia, Swisse Wellness PTY Ltd., and YOUVIT.

Key Development

• During the COVID -19, Paragon Group launched new cosmetic brands to cater to the changing needs of Indonesian consumers who were spending more time at home and shopping online. The company unveiled brands, such as Emina and Putri, which offer affordable and halal-certified cosmetic products designed for younger consumers.
• Skincare products made from natural ingredients are particularly popular. As an example, Sensatia Botanicals and Martha Tilaar make-up products are designed to withstand the hot and humid climate in Indonesia.
• Sanofi and Innate Pharma SA announced an expansion of their partnership in December 2022. Sanofi licensed an NK cell engager program from Innate's ANKETTM (Antibody-based NK Cell Engager Therapeutics) technology that targets B7H3. Along with Sanofi be able to choose to add up to two more ANKETTM targets.
• Croda International Plc ('Croda') announced on February 6, 2023 that it has reached an agreement to purchase a leader in high-end, biotechnology-derived beauty actives, Solus Biotech ('Solus'), from Solus Advanced Materials on a KRW350bn (about £232m) total consideration basis.cash-free and debt-free basis. The purchase gives users access to Solus' current biotech-derived developing capabilities in natural retinol, phospholipid and ceramide technology.